New round of tariffs on Chinese imports to soon hit consumers

You may not have, yet, noticed... but a massive, new round of tariffs on Chinese imports will, soon, hit consumers.

The up-to 25 percent tax, levied by the Trump Administration, on $200 billion worth of Chinese goods covers more than 5,700 products. Many of them are things that Americans buy every day: food products, consumer electronics, furniture, and tires to name a few.

At Houston-based Bike Barn, most of the inventory comes from overseas, and owners say tariffs on Chinese-made bicycles and parts have been a frequent topic of discussion within the industry.

"Consumers are going to become more price sensitive," says Bike Barn co-owner Lee Neathery, "At what point are they going to say, 'This is too much for the pocketbook'?"

It's a real concern. While many manufacturers have not, yet, offered a plan to deal with the added costs, the Wisconsin-based Trek Bicycle Corp. has already alerted retailers of an immediate 5 percent price hike, because of tariffs.

Bike Barn's Neathery says the cost will have to be passed along to customers.

"Most retailers operate on a single-digit profit margin. Any movement in 'cost-of-goods-sold' is extremely hard for retailers across the country, especially local retailers, to absorb," she says.

How consumers respond is a big mystery. Some we spoke to offered mixed reaction.

"I like things being built, here, in America," says Stephane Bayliss, "There's a lot of people who need jobs and it would be a perfect opportunity."

But Jose Ramirez says a price-hike would be hard, "I'd be bothered by it, because we can barely make it with what we get paid."

An end to the stalemate does not appear close. China has already responded with new tariffs on U.S. imports, and both sides have called-off any scheduled trade talks.